Accepted assessed value bars later market enquiry challenge; restricted imports without licence justify confiscation, with fine reduced.

Where the importer accepted the assessed value at clearance, a later challenge seeking a market enquiry did not survive, and the valuation determined at assessment was upheld. Import of restricted goods without the requisite licence rendered the goods liable to confiscation under Customs law, so confiscation was sustained. The penalty under section 112(a) was found proportionate and left undisturbed, but the redemption fine was considered excessive in relation to the assessed value and was reduced.

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Issues: (i) whether the import value of the goods could be disputed after the importer had accepted the assessed value at the time of assessment and whether a market enquiry was required; (ii) whether confiscation of the goods and the quantum of redemption fine and penalty were sustainable for import of restricted goods without a valid licence.

Issue (i): Whether the import value of the goods could be disputed after the importer had accepted the assessed value at the time of assessment and whether a market enquiry was required.

Analysis: The goods were examined in the presence of the importer's representative and a Chartered Engineer. The valuation was worked out on that basis and was accepted by the importer by letter at the time of assessment. In that situation, the challenge that a market enquiry ought to have been conducted, or that its details should have been furnished, did not survive.

Conclusion: The valuation determined at assessment was upheld and the objection based on market enquiry was rejected.

Issue (ii): Whether confiscation of the goods and the quantum of redemption fine and penalty were sustainable for import of restricted goods without a valid licence.

Analysis: The goods were imported in violation of the applicable Foreign Trade Policy without the requisite licence, making them liable to confiscation under the Customs law. The confiscation was therefore sustained. However, the redemption fine of Rs. 6,50,000, being about 33% of the assessed value, was found excessive when compared with the usual benchmark applied in confiscation matters and was reduced. The penalty imposed under section 112(a) was considered proportionate and was left undisturbed.

Conclusion: Confiscation and penalty were sustained, but the redemption fine was reduced to Rs. 2,00,000.

Final Conclusion: The appeal succeeded only to the limited extent of reduction of redemption fine, while the remaining findings and monetary liability were maintained.

Ratio Decidendi: Where the importer accepts the assessed value at the time of clearance, a later demand for market enquiry does not warrant interference; and import of goods in violation of licence restrictions justifies confiscation, with redemption fine required to remain proportionate to the assessed value.

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